WTO Considers Lifting Tariffs On Bicycles

Based on this OECD report, the World Trade Organization has begun negotiations on classifying bicycles as an "environmentally preferable product" that would be free of tariffs and other trade barriers.

2 minute read

May 2, 2006, 5:00 AM PDT

By Michael Dudley


"The term environmentally preferable products was first defined at the international level by UNCTAD in 1995 as 'products which cause significantly less environmental harm at some stage of their life cycle (production, processing, consumption, [or] waste disposal) than alternative products that serve the same purpose, or products the production and sales of which contribute significantly to the preservation of the environment'.

The environmental and developmental benefits of bicycles as a flexible, affordable and non-motorised form of transportation have long been recognised, although their full potential is yet to be realised. The largest exporter of assembled bicycles and delivery tricycles is China, followed by OECD countries. Production of bicycle parts is less geographically concentrated, and includes a number of developing countries. Countries tend to levy higher tariffs on assembled units than on individual parts.

The environmental benefits of bicycles include, but are not limited to, reducing congestion, avoiding air pollution and CO2 emissions, and conserving fuels. A bicycle places fewer demands on space than a motorised vehicle, in terms of both operation and parking. Among the developmental benefits are: empowerment of vulnerable groups, increased income-generating opportunities, accessibility, low capital investment and low maintenance costs. Health-care and social workers and their patients also benefit: for example, bikes are helping HIV/AIDS educators in Ghana reach 50% more people than they would if they travelled by foot."

Thanks to Institute for Transportation and Government Policy

Tuesday, April 25, 2006 in The Organisation for Economic Development and Cooperation

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